WVC 46 - 5 - 109
§46-5-109. Fraud and forgery.
(a) If a presentation is made that appears on its face
strictly to comply with the terms and conditions of the letter of
credit, but a required document is forged or materially fraudulent,
or honor of the presentation would facilitate a material fraud by
the beneficiary on the issuer or applicant:

(1) The issuer shall honor the presentation, if honor is
demanded by (i) A nominated person who has given value in good
faith and without notice of forgery or material fraud, (ii) a
confirmer who has honored its confirmation in good faith, (iii) a
holder in due course of a draft drawn under the letter of credit
which was taken after acceptance by the issuer or nominated person,
or (iv) an assignee of the issuer's or nominated person's deferred
obligation that was taken for value and without notice of forgery
or material fraud after the obligation was incurred by the issuer
or nominated person; and

(2) The issuer, acting in good faith, may honor or dishonor
the presentation in any other case.

(b) If an applicant claims that a required document is forged
or materially fraudulent or that honor of the presentation would
facilitate a material fraud by the beneficiary on the issuer or
applicant, a court of competent jurisdiction may temporarily or
permanently enjoin the issuer from honoring a presentation or grant
similar relief against the issuer or other persons only if the
court finds that:

(1) The relief is not prohibited under the law applicable to
an accepted draft or deferred obligation incurred by the issuer;

(2) A beneficiary, issuer, or nominated person who may be
adversely affected is adequately protected against loss that it may
suffer because the relief is granted;

(3) All of the conditions to entitle a person to the relief
under the law of this state have been met; and

(4) On the basis of the information submitted to the court,
the applicant is more likely than not to succeed under its claim of
forgery or material fraud and the person demanding honor does not
qualify for protection under subsection (a)(1).

Note: WV Code updated with legislation passed through the 2016 Regular Session
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